Veteran analyst revisits Ford stock price after earnings

Core Insights - Ford's shares have surged nearly 7% following a strong earnings report, with record revenue and net income growth, despite challenges in its electric vehicle division [1][4][5] Financial Performance - Ford reported earnings of 45 cents per share and record revenue of $50.5 billion, reflecting a 9.3% year-over-year increase, surpassing analyst expectations of 38 cents per share [4] - The company's net income reached $2.4 billion, more than double the $900 million reported in the same quarter last year [4] - Ford's cash balance stands at $32.7 billion, which increases to $37.9 billion when including longer-term investments [5] Electric Vehicle Division - Ford Model e, the electric vehicle division, experienced its best sales month ever, but incurred a loss of $1.4 billion in the third quarter due to high spending on new products and increased competition [2][3] - The company initially projected a $5 billion loss for Model e for the year, but the sentiment around EV adoption has shifted under the new presidential administration [8] Market Trends - In 2023, Ford sold 1.99 million vehicles, a 7.1% increase from the previous year, while 2024 sales are projected to reach 2.08 million vehicles, a 4.2% increase [7] - Electric vehicles are expected to exceed a 12% market share in the U.S. for the first time, following a 2.6% year-over-year increase [8] Analyst Insights - A veteran analyst raised Ford's price target from $12 to $16 per share, citing the company's strong balance sheet and financial performance [5] - Despite a $1 billion tariff headwind, which is half of previous projections, Ford has lowered its full-year adjusted EBIT expectation to between $6 billion and $6.5 billion [6]